The Netflix and Warner Bros. deal is far from a sure thing
Subscribe to enjoy similar stories. Netflix and Warner Bros. Discovery have reached a deal—but getting it approved won’t be so easy.
Netflix on Friday announced that it has agreed to buy Warner Bros. studios and HBO Max once the company completes the previously planned spinoff of its global cable network operations. The transaction is subject to regulatory approval.
Multiple media reports, including one from The Wall Street Journal, indicate the Department of Justice will investigate the deal. “Recent media reports about DOJ and Congressional concern suggest that the risks are real," Wolfe Research analyst Peter Supino said. Barron’s has reached out to the White House for comment on the deal.
During Trump’s first term, the Justice Department filed an antitrust lawsuit to block a merger between AT&T and Time Warner. The DOJ ultimately lost that case. However, this year, the Federal Communications Commission approved a merger between Paramount and Skydance.
The approval’s timing caught the attention of critics who say it came not long after Paramount and Trump settled a lawsuit in early July, with Paramount agreeing to pay the president $16 million. David Ellison took over as CEO of Paramount Skydance shortly after the settlement. His father, Larry Ellison, has a close relationship with Trump.
Paramount was a top contender for Warner Bros. According to a report from the Journal, Paramount accused Warner Bros. of favoring Netflix during the bidding process.
People familiar with the matter confirmed the report’s accuracy to Barron’s. Netflix co-CEO Ted Sarandos, on a conference call Friday morning, called the deal pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth. “We’re really confident that we’re going
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